Corporate Social

ResponsibilityA Strategic Approach

CSR- Concept
Involves treating the main stakeholders
of a company in a responsible manner
Responsive attitude towards the social
system
which
includes
finance,
economy, environment and social
issues
Responsibility is about taking issues
that affect the corporate body and the
society

Strategy- A concept
A strategy is the way/ method/ system/
model/ process to combat with rivals.
A strategy should be incorporated with the
core
decision-making
and
policy
formulation.
Competitive
advantage
is
the
implementation
of
a
value-creating
strategy
not
simultaneously
being
implemented by any current or potential
competitors

Strategic CSR
While CSR depends on being a good
corporate citizen and addressing
every social harm the business
creates, strategic CSR is far more
selective.
-Michael Porter and Mark Kramer's
Harvard Business Review ArticleDecember 2006.

Strategic CSR
Strategic CSR is defined as a win:
win
approach
to
social
responsibility, whereby organisations
demonstrate responsibility to society,
and receive benefit in return.
Gives a Competitive edge to the
business

Objectives of Strategic CSR

1. Minimize the environmental impact
2. Guarantee

transparency

with

the

investment

community
3. Ensure that employees are motivated and involved
in the continuous improvement of the company
4. Maintain a close relationship with the client to
guarantee client satisfaction
5. Extend the commitment to Social Responsibility to
suppliers and sub-contracted companies
6. Involvement with the community and the society as
a whole
7. Encourage
channels

and

systematize

communication

Strategic CSR Plan

The Five Driving Forces of

CSR

Driving
Forces

Growing
Affluence

Impact

CSR issues and Practices gain importance

in society consisting of people having
high income, high savings and security.
People are more responsive and think of
businesses beyond provider of goods /
services and employment.
Attention

to

CSR

is

given

more

developed economies
Ecological Growing Awareness and concern about
Sustainab
environment.
ility
Issues like pollution, deforestation,
imbalance in bio-diversity global

in

The Five Driving Forces of

CSRImpact
Driving
Forces
Globalizat Global competition
ion
Impact of operation on world economy
Diverse stakeholders- Diverse Business
Environments-Strategy
considering
cultures

the

across

formulation

varying
globe

natures
of

by
and

workers,

customers and citizens.

Norms, rules, and regulation of Home and
Host Countries

The Five Driving Forces of

CSRImpact
Driving
Forces
Free- Flow Informational Transparency- Right to
of

Information- Demand for Information-

Informati

Business obligation

on

Affordable communication Technology

and Age of Internet
Information about issue of critical nature
freely available
NGOs and Social Activist Group can
question the companies on the basis of
information and communication
technology.
Corporate Reputation at Stake

CSR and CSV

The idea behind Creating Shared Value
is that the competitiveness of a
company and the health of the
communities around it are mutually
dependent.
Recognizing this fact and capitalizing
on these connections between societal
and economic progress will bring in a
new wave to the economic prosperity.

Creating Shared Value

Creating shared value

Value for Company

Value for Society

Purcha 1. Securing high standard

se
suppliers
2. Building Trust worthy
Relationship

1. Increasing the local

standard of living
2. Giving indirect
employment

Proces
s

1. Lowering manufacturing
and distributing costs

1. Minimizing environment
impact
2. Improving
worker/employee
performance standards
3. Economic growth

People

1. Generative profit through

a motivated, competent
and diverse workforce

1. Creating worldwide job

opportunities
2. Increasing general
competence level

Produc Creating profits throught

1. Competent product

1. Minimizing environment
impact